Orchard Street Investment Management has announced an acceleration of its ESG efforts through the launch of its net zero carbon pathway.
Following the launch of Orchard Street’s net zero carbon targets in January, the pathway outlines two new and ambitious commitments: to become a net zero carbon business for corporate and landlord emissions and refurbishments by 2030, 20 years earlier than originally announced, and to become a net zero carbon business for occupier emissions and fit-outs by 2040, 10 years earlier than planned.
The business has undertaken extensive modelling and data collection over the past two years and so is well placed to implement its new approach from day one, having already begun its journey to reach a 25% reduction in occupier carbon intensity by 2025.
'The acceleration of our net zero carbon pathway reflects our deep conviction that there is not only an environmental benefit of converting our portfolios to become net zero carbon but a real financial driver,' said Lora Brill, head of Responsibility & ESG at Orchard Street. 'With significant regulatory changes on the horizon, and with rapidly increasing occupier requirements for sustainable buildings as businesses set out their own net zero carbon targets, we would be failing in our governance and stewardship responsibilities if we failed to consider the financial impact. We are not alone in this view, with $49 trillion in AUM committed to the Net Zero Asset Owners Alliance and Net Zero Asset Managers Initiative globally. Client engagement has also been critical to setting the timeline and scope of our targets and informed our decision to bring forward our commitments to 2030 and 2040, ahead of the 2040 and 2050 targets that much of our peer group has committed to.'
Philip Gadsden, managing partner at Orchard Street, added: 'Not only is transitioning to a net zero carbon business simply the right thing to do, as asset managers we have a fiduciary responsibility to our clients to protect their investments by mitigating risks associated with climate change. We are reaching a critical point in the industry with 40% of global emissions coming from the built environment, and with COP26 fast approaching, now is the time for landlords and investors to come together to create sustainable, future-proofed solutions that both meet the needs of our clients and directly tackle one of the defining challenges of our time.'
